What is a charitable remainder trust?

Video Transcript

A charitable remainder trust is a type of trust that a grantor can establish and transfer assets to the trust. In exchange, the grantor will receive a payment back in the form of an annuity or a percentage each year. At the end of the term, the assets remaining in the charitable remainder trust pass to a charity. One big benefit of a charitable remainder trust is that when it’s set up, the grantor of the trust can obtain an income tax deduction in the year that it’s established.